A WOMAN with disabilities has seen her Social Security payments diminish to just $14 per month over an error that wasn’t her fault.
The SSA alleged that she was overpaid $12,000, pushing the federal agency to slash her monthly checks and leave her with meager income.
The SSA has issued billions of dollars in overpayments[/caption]
One woman saw her monthly Social Security benefits reduced to just $14 a month due to an overpayment error[/caption]
Jessica Melton from Tennessee has a disability that has left her no longer able to work.
The woman receives money from Supplemental Security Income, or SSI, a needs-based program run by the SSA that offers monthly cash payments to those with disabilities and older adults with minimal or no income or resources.
Melton has relied on her SSI checks for years, but was recently hit with an overpayment notice for $12,000, leaving her strapped for cash as she works to pay back her debt.
The overpayment error stemmed from the income limit the SSA set for SSI recipients, requiring that married couples’ monthly income does not exceed $3,000.
Melton was initially informed that the overpayment was not her fault at the start of January.
However, two weeks later, the SSA backtracked on its stance and sent Melton a letter claiming she was responsible for the error, she told local ABC affiliate WATE.
The overpayment had been growing over multiple years.
“They said they would reevaluate my case every two years. It’s been okay up until 2021,” Melton told the outlet.
“My husband makes too much money.”
To recoup the money, the agency slashed the Tennessee woman’s SSI benefit to just $14, leaving her with hardly any cash to pay for basic necessities.
“It was dwindling down even one month to only $14,” said Melton.
“Every time I got paid, I had to give them a payment of an overpayment. Each time my husband got paid, my overpayment went up.”
DOLLAR DISAGREEMENT
Melton’s husband’s income has always been less than $3,000 per month, adhering to the monthly income limit, she told WATE.
However, the SSA calculated her husband’s income as exceeding the threshold, making Melton ineligible for any SSI benefits.
Filing a waiver with the SSA
Those who cannot afford to pay back the overpayment amounts noted by the SSA or feel they should not have to can file a specific form.
- The form is identified as SSA-632 on the SSA website and can be filled out and submitted at a local office.
- “If you agree that you have been overpaid, but you feel you should not have to pay it back because you did not cause the overpayment and you cannot afford to repay it, you should file Form SSA-632,” the SSA notes on its website.
- It also lists multiple repayment options.
- Recipients with additional questions are urged to call 1-800-772-1213.
“After we got through the understanding of what we needed to do, I found out I wasn’t allowed to be self-employed, and my wife get SSI,” said Melton’s husband Jason, who works as a delivery driver.
Because the federal agency viewed the overpayment error as Melton’s fault, the woman is being held responsible to pay back the $12,000.
“This leaves me paying a debt I don’t owe,” she said.
“I think it is a lot of red tape,” added Jason. “My wife was making a little bit of money. Now that money is gone.”
The federal agency offered Melton the option to request an administrative judge review of her case.
MORE ON OVERPAYMENTS
The SSA made approximately $72 billion in improper payments from fiscal year 2015 through 2022, most of which were overpayments, according to a report from the Office of the Inspector General.
Although some of the debt was recouped, the agency was still owed $23 billion at the end of the 2023 fiscal year.
These overpayments occur when the SSA sends recipients more money than they are owed, errors that can stem from either the beneficiary or the agency.
For example, an overpayment may take place if a recipient fails to inform the SSA about updates to their income, living situation, marital status, or other changes.
These errors can also occur due to administrative errors by the federal agency.
“While statistically speaking Social Security overpayments are rare, they often receive significant attention when they occur because the individual who received them may not have realized they were occurring and find themselves with a sizable sum to pay back,” Alex Beene, a financial literacy instructor, told Newsweek.
He advised those who find out that they are receiving more money than their benefit amount to contact Social Security immediately.
“If you find yourself having to pay back overpayments, you can work with the Social Security Administration on a timeline for repayment or possibly getting that amount reviewed if you feel the mistake was on the administration’s end,” he said.
One woman was left pleading for help after Social Security demanded she pay back $88,000 – she’s terrified to lose her home.
Meanwhile, a mother was forced to pay back $43,000 to Social Security after a “despicable” error – and it went back 19 years.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here’s how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
- 401(k) Plans
- A 401(k) is a retirement account offered through employers, where contributions are tax-deferred.
- Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings.
- Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.
- IRAs
- An Individual Retirement Account (IRA) offers another avenue for retirement savings.
- Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices.
- Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.
